Booz Allen Beats EPS Estimates as Revenue Falls

Management says stronger national security demand alongside rising backlog and margin gains underpin its decision to hold full‑year guidance.

Overview

Booz Allen reported first‑quarter fiscal 2027 results on July 24, 2026, with revenue down 4.2% to $2.8 billion and adjusted EPS of $1.81 that topped the FactSet consensus.
Adjusted EBITDA rose to $334 million and the adjusted EBITDA margin widened to 11.9%, a 130‑basis‑point improvement that helped lift profitability despite the top‑line decline.
National security revenue grew 1% while civil revenue fell 16%, and management said it now expects national security to deliver mid‑single‑digit growth for the full year as new work ramps.
Funded backlog increased about 15% to $4.7 billion and total backlog rose to just over $39 billion, and the company reaffirmed its FY27 guidance and expects to close the Ultra I&C Mission Solutions deal in Q2.
Shares jumped roughly 15% on the results and guidance, and the company pointed to prior cost cuts and a roughly 7.5% year‑over‑year headcount reduction to preserve margins even as hiring for cleared personnel remains constrained.